Monday, February 26, 2024

ZAFFICO nears LuSE listing, hopes to raise K329.6 million



ZAFFICO workers at Shiwang'andu Forest plantation on Tuesday,December 15,2015 in Muchinga Province. PICTURE BY EDDIE MWANALEZA/STATE HOUSE ©2015
ZAFFICO workers at Shiwang’andu Forest plantation on Tuesday,December 15,2015 in Muchinga Province. PICTURE BY EDDIE MWANALEZA/STATE HOUSE ©2015

The Zambia Forestry and Forest Industries Corporation is targeting to raise K329.6 million when it lists its 40% shares on the Lusaka Securities Exchange.

The ZAFFICO Initial Public Offering is expected to debut on the LuSE on February 7th 2020.

According to the prospectus published last week, the offer of up to 40% of the shareholding of ZAFFICO totals 160 million Ordinary Shares of the share capital in ZAFFICO to the Public, employees of ZAFFICO and selected institutional investors.

ZAFFICO is hoping that it’s shares will open at K2.06.

ZAFFICO says the objectives of the offer and listing include to afford the Zambian Public, Zambian Institutional Investors, employees of ZAFFICO and other qualifying investors the opportunity to participate in the potential growth of ZAFFICO.

It also says it wants to fund ZAFFICO’s future expansion programs
to create a public market for the Ordinary Shares and to provide the Selling Shareholder, the Industrial Development Corporation with an opportunity to reduce its shareholding in the company.

The company also says it wants to support the development of the Zambian capital market.

The ZAFFICO IPO will be the first in seven years after the Madison Financial Services IPO of mid-2014 in which the company raised K62 million from investors who paid K3.10 per share for the financial services company’s security.


    • This offer of shares is likely to flop because the state will still control 60%of voting shares and could fire even a successful CEO for no good reason. No money manager would invest in such a company. Try and we we see wht happens. Secondly the state isn’t an ordinary shareholder in a company. If it doesn’t like wht it sees, it can always legislate to get wht it wants instead of playing by the rules as per Company Law.

  1. Zambian Citizen sure, no guilt considering the scandals surrounding ZAFFICO. I wouldn’t put any money in this institution, otherwise you are just helping Lungu, Tasila and others loot and deplete our resources. The future generation is not going to forgive you

    • China, hatred bu loshi. ZAFFICO is a public enterprise that has operated normally and the negative and false news surrounding it is nothing but an opposition ploy to discredit Edgar Lungu. PF has taken the direction of preserving state philosophy of enhancing their value and making them operate profitably. MMDs philosophy was to sell them. Upnd seeks to take the MMD philosophy by lying to Zambians that PF has destroyed the economy and looted assets therefore they must be sold. IDC, KCM, gold discoveries, Zambia Airways etc is the way forward for our future generations. Remember, a country without assets cannot control its economy.

  2. A good opportunity given that in the near future, demand will outstrip supply, so the share price is bound, in the long run, to increase. Secondly, for those who can afford, instead of just saving up for your child’s university through insurance, this may actually be more beneficial, say 15 year time horizon.

  3. @ZambianCitizen. You’re right HH and his UPND did indeed make the claim that ZAFFICO was sold to the Chinese, and what’s worse is he’s not apologised for saying that, apologise he should.
    If he’s nearly as half as the man he claims to be he should apologise or provide clarity to the matter for misleading Zambians. What he did is unforgivable to me personally and doesn’t deserve my vote at all. In my book, if a leader or one who claims to be f@#Ks up, they must own up – it’s non negotiable?
    For UPND members (esp. Anthony Bwalya who I respect so much) out here and there, please demand from your leader a public apology.

  4. HH come out open and defend yourself and upnd over the sale of ZAFFICO,why are you quiet you liar fake critics with selfish ambitions whose interest is to favor gays.Foote say sampin.

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